On March 12, 2020, two days before the state of alarm was decreed in Spain, Mango presented its best results in three years.
It managed to return to profits after years of losses and achieved historic sales, thanks to the management of Toni Ruiz (first as CEO, then as CEO) and the promotion of the online channel.
This year the reality is very different, as
the pandemic has had an impact on the group's business
, with a 43% drop in sales in physical stores and a turnover of 1,842 million euros, compared to 2,374 million in 2019.
The total turnover was thus reduced by 22% and the group loses 110 million,
compared to the profit of 41 million the previous year.
The year has been a very rollercoaster,
The year has been a very rollercoaster,
with a good start (January and February), a spring with the stores closed (March-June, during lockdown), a relatively good summer and an autumn, until the second wave of November, too positive.
The crash would have been greater if
the online channel
had not performed so well.
Sales grew by 36%, to 766 million, and
are already 42% of the group's total turnover
, which has accelerated this transformation in which they were immersed.
This data is above the industry average.
Just a year earlier, 24% of total sales were through the internet, so it has doubled in a few months.
The pandemic has shortened all times and in one year ecommerce has advanced by five years.
The goal is to reach a billing of 1,000 million through the internet this year.
"We have had an exceptional year, but thanks to Mango's commitment to the online channel, we have reached 42% of the turnover", explains Toni Ruiz, CEO.
The physical stores with the greatest drop in sales are in the areas most subject to restrictions, such as Catalonia.
Regarding the international market,
the Central European countries have suffered less this impact than those of the South
(Italy, Spain, Portugal).
Mango's international activity represents 79%, and the Spanish market, 21% of the business.
Mango has taken advantage of this black year for commerce to accelerate the digitization processes,
introduce new product categories
(it launched its own home textile section -Mango home-) and test new formulas, such as selling brands on its website from third parties.
For a few weeks on their website you can buy clothes from the brand intimísimi.
All these changes focused on adapting to customer demands were planned and Mango did not want to change the calendar.
"We are satisfied with the work we have done in this difficult year.
We have achieved reasonable billing levels taking into account the context," says Ruiz.
The group has worked on two planes:
in the short term, the business has had to adapt according to each autonomous community
and its restrictions and this has meant constantly opening and closing stores, or adapting them.
In the long term, we have continued with the projects underway, such as the online channel or the loyalty club, which allows obtaining customer data and adapting the offer.
Mango rules out closing physical stores, considering that it is an important point of contact with the customer.
At the end of the year it had 2,221 stores in 110 countries, 43 more than in 2019.
Despite the pandemic (and that the stores were closed in spring)
, the stock has been reduced by 10%
When the non-essential trade was closed, the collections were restructured to suit the situation.
This has also been achieved thanks to the introduction of RFID, a technology that allows the tracking of garments from the factory to the store.
Mango requested an ICO loan worth 240 million and operating expenses were reduced by 230 million.
Bank debt has been reduced by 20%, to 156 million.
According to the criteria of The Trust Project
CompaniesMango invests 42 million in the creation of a new innovation center
ConsumptionMango will sell Intimissimi lingerie on its website from spring
Like Queen Letizia, Máxima of the Netherlands chooses red to get out of her slumber
See links of interest
Huesca - Celta de Vigo
Malaga - Sabadell
Liverpool - Fulham
Crotone - Torino
Atlético - Real Madrid, live